11/09/2019
SEC fines Texas-based firm for offering illegal tokens, unregistered exchange
The U.S. Securities and Exchange Commission said on Thursday it fined and settled charges against a Texas-based cryptocurrency firm and its founders for wrongfully issuing digital offerings and for using an unregistered online trading platform.
Bitqyck, and its founders Bruce Bise and Sam Menendez, gained $13 million from creating and selling its unregistered securities offerings to more than 13,000 investors. The SEC alleged that the defendants told investors that one of its tokens, Bitqy, would provide fractional shares of the firm’s stock through a smart contract, while its other token, BitqyM, would provide investors interest in a crypto mining facility.
The firm did not actually own such a facility. It also wrongfully allowed investors to trade its Bitqy coins using an unregistered exchange, TradeBQ. Neither Bitqyck nor its owners admitted or denied the SEC’s claims.